Eh. The CPU will be more than fine but that Skylake GPU is even weaker than last gen's Haswell GPUs. And those suckers struggle at anything above 1.5x internal resolution for many games.

In that form factor you're not going to find many options. Your only other option that would sort of work is an AMD APU but their CPUs are so bad with performance you're going to have a pretty bad time with a lot of games.

Personally, I'd wait for Polaris or Pascal to have something at that price point, but that could be quite a while away, so it may not be a good idea in your situation.

OS: Windows 10 64 bit Professional
CPU: Intel i5 4670K @3.4GHz... for now @4.6GHz with a quick and dirty (yet stable) OC. May get faster in a bit before the end of time.
RAM: 16GB (Down from 24 GB after some was given to siblings)
GPU: Radeon Vega 56